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“Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause Deschutes County, Access to Records. Contractor shall maintain fiscal records and all other records OR pertinent to this Contract. a. All fiscal records shall be maintained pursuant to generally accepted accounting standards, and other records shall be maintained to the extent necessary to clearly reflect actions taken. All records shall be retained and kept accessible for at least three years following the final payment made under this Contract or all pending matters are closed, which ever is later. If an audit, litigation or other action involving this Contract is started before the end of the three year period, the records shall be retained until all issues arising out of the action are resolved or until the end of the three year period, whichever is later. b. County and its authorized representatives shall have the right to direct access to all of Contractor's books, documents, papers and records related to this Contract for the purpose of conducting audits and examinations and making copies, excerpts and transcripts. These records also include licensed software and any records in electronic form, including but not limited to computer hard drives, tape backups and other such storage devices. County shall reimburse Contractor for Contractor's cost of preparing copies. At Contractor's expense, the County, the Secretary of State's Office of the State of Oregon, the Federal Government, and their duly authorized representatives, shall have license to enter upon Contractor's premises to access and inspect the books, documents, papers, computer software, electronic files and any other records of the Contractor which are directly pertinent to this Contract for the purpose of making audits, examinations, excerpts, copies and transcriptions. Henrico County, VA 23. Record Retention/County Audits: a. The successful bidder shall retain, during the performance of the contract and for a period of three years from the completion of the contract, all records pertaining to the successful bidder's bid and any contract awarded pursuant to this Invitation to Bid. Such records shall include but not be limited to all paid vouchers including those for out-of-pocket expenses; other reimbursement supported by invoices, including successful bidder's copies of periodic estimates for partial payment; ledgers, cancelled checks; deposit slips; bank statements; journals; contract amendments and change orders; insurance documents; payroll documents; timesheets; memoranda; and correspondence. Such records shall be available to the County on demand and without advance notice during the successful bidder's normal working hours. b. County personnel may perform in-progress and post-audits of the successful bidder's records as a result of a contract awarded pursuant to this Invitation to Bid. Files would be available on demand and without notice during normal working hours. Kansas City, MO Following is the “Right to Audit” language used for Aviation Department Concession Agreements. This is from a draft of an agreement we are negotiating, but the audit language is essentially the same for all of our concession agreements. Section 409: Retention of Records. Upon commencement of the Term, Company agrees that it will make available to the City within 10 business days of written notice, the books and records of accounts of Company for the last three twelve month periods completed and the “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause current Agreement Year, showing the information required under this Article IV or other similar article(s) contained in the Previous Agreement, relating to business conducted at the Airport, the deductions there from, and other pertinent information required by the provisions of this Article or other similar articles contained in the Previous Agreement. Company’s obligation to retain such books and records is limited to the extent required under this Agreement, Interim Agreement and/or Previous Agreement, until the Company retains sufficient books and records to meet the retention requirements stated above. Upon the City’s prior written notice such books and records of accounts must be accessible during regular business hours to City or its duly authorized agents or auditors only for the purpose of verifying compliance by Company with the terms of this Agreement, Interim Agreement and/or Previous Agreement. At the City’s request, Company will pay for the copying and delivery of all records and books requested by the City. In the event the City determines that the auditors need to travel to the Company’s location where the books and records are kept, Company will pay for the reasonable and customary travel and other incidental costs incurred by the City’s auditors. Section 410: Independent Certified Public Accountants. Wherever the statement of an Independent Certified Public Accountant is required, the parties agree that said CPA must not be a member of Company’s staff or firm. Section 411: City’s Right to Audit Statements and Reports. City shall have the right to audit the statements and reports provided by Company in accordance with Article IV herein. Except as provided in Section 409 above, the cost of audit shall be borne by City; unless the audit reveals an underpayment of Annual Concession Fees by Company of 5% or greater, or if the audit reveals that the condition of the Company’s records is such that the revenue due City cannot reasonably be properly determined. In the event of either condition described above, the reasonable cost of the audit, including any applicable travel costs, must be borne by the Company which must be payable within five business days of receipt of an invoice. Following is the City’s standard contract language related to the City’s “Right to Audit.” This included as supplemental conditions to most, if not all, City contracts. H. Audit 1. The City Auditor, the City’s Internal Auditor, the City’s Director of Human Relations and the City department administering this Contract shall have the right to audit this Contract and all books, documents and records relating thereto. 2. CONTRACTOR shall maintain all its books, documents and records relating to this Contract during the Contract period and for three (3) years after the date of final payment. 3. The books, documents and records of CONTRACTOR in connection with this Contract shall be made available to the City Auditor, the City’s Internal Auditor, the City’s Director of Human Relations and the City department administering this Contract, within ten (10) days after written request. Metro Louisville, KY The Contractor shall maintain, during the term of the contract, and retain not less than five years after the final date of payment under the contract complete and “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause accurate records of all of the Contractor's costs which are chargeable to the City of Louisville under the Contract; and the City of Louisville shall have the right, at any reasonable time, to inspect and audit those records by authorized representatives of its own or of any public accounting firm selected by it. The records to be thus maintained and retained by the Contractor shall include (without limitation): (a) payroll records accounting for total time distribution of Contractor's employees working full or part time on the Contract (to permit tracing to payrolls and related tax returns), as well as canceled payroll checks, or signed receipts for payroll payments in cash; (b) invoices or receipts for purchases, receiving and issuing documents, and all the other unit inventory records for Contractor's stored stock or capital items; and (c) paid invoices, receipts and canceled checks for materials purchased and for subcontractors; and any other third parties' charges. Milwaukee, WS RECORDS. A. Establishment and Maintenance of Records. Records shall be maintained in accordance with requirements prescribed by the City with respect to all matters covered by this Contract. Except as otherwise authorized, these records shall be maintained for a period of six (6) years after receipt of the final payment under this contract. B. Documents of Costs. All costs shall be supported by properly executed payrolls, time records, invoices, contracts or vouchers, or other official documentation evidencing in proper detail the nature and propriety of other account6ing documents pertaining in whole or in part to this Contract and shall be clearly identified and readily accessible. REPORT and INFORMATION. At such times and in such form as the CITY may require, there shall be furnished to City such statements, records, reports, data, and information as the City may request pertaining to matters covered by this Contract. AUDITS and INSPECTIONS. At any time during normal business hours and as often as the City, the City's Comptroller or if federal or state grants or aids are involved, as the appropriate federal or state agency may deem necessary, there shall be made available to the City, the City's Comptroller or such agency for examination all of its records with respect to all matters covered by this Contract and the CONTRACTOR and any Subcontractors, shall permit the CITY, the City Comptroller and/or representatives of the Comptroller General to audit, examine and make excerpts or transcripts form such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment, and other data relating to all matters covered by this contract. Further, any contract issued by the CONTRACTOR to a Subcontractor for work relating to this contact shall have an Audit Clause similar in form and execution to this clause. Orange, CA 20. Audit of Records. In accordance with generally accepted accounting principles, Consultant shall maintain reasonably full and complete records of the cost of and completion of services performed under this Agreement. During the term of this Agreement and for a period of two years after termination or completion of this Agreement, City shall have the right to inspect and/or audit Consultant's records pertaining to the performance of this Agreement at Consultant's office. Consultant agrees to make available all records for inspection or audit at its offices during normal business hours and upon 3 days notice from “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause City. PwC Global Below is a right to audit clause that I have seen organizations use effectively on capital expansion programs. As a penalty, it requires the contractor to pay for the audit if there are substantial findings. I have seen some organizations add language to penalize contractors as much as 100% of the overcharge amount. I hope this is useful for you and the others copied on this email. The OWNER or its designee shall be entitled to audit all of the CONTRACTOR's records for a period of three years after final payment or longer if required by law. CONTRACTOR records shall be maintained and subject to audit. Such records shall include but not be limited to accounting records, written policies and procedures; subcontract files (including proposals of successful and unsuccessful bidders, bid recaps, etc); original estimates; estimating work sheets; correspondence; change order files (including documentation covering negotiated settlements); backcharge logs and supporting documentation; general ledger entries detailing cash and trade discounts earned, insurance rebates and dividends and any other contractor records which may have a bearing on matters of interest to the OWNER Company in connection with the CONTRACTOR's work for the OWNER all of the foregoing hereinafter referred to as "records" shall be open to inspection and subject to audit and/or reproduction by the OWNER's agent or its authorized representative to the extent necessary to adequately permit evaluation and verification of: (a) CONTRACTOR compliance with contract requirements, (b) compliance with business practice contractual requirements, and (c) compliance with provisions for pricing change orders, invoices or claims submitted by the CONTRACTOR or any of its' payees. Other specific records subject to audit include all information, materials and data of every kind and character such as documents, subscriptions, recordings, computerized information, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, superintendent reports, drawings, receipts, vouchers and memoranda, and any and all other agreements, sources of information that may in. The OWNER's judgment have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any contract document. Such records subject to audit shall also include those records necessary to evaluate and verify direct and indirect costs, (including overhead allocations) as they may apply to costs associated with this contract. In those situations where contractor's records have been generated from computerized data (whether mainframe, mini-computer, or personal computer based computer systems), CONTRACTOR agrees to provide The OWNER's representatives with extracts of data files in computer readable format on data disks or suitable alternative computer data exchange formats. The OWNER shall require all payees (including those entering into lump sum major material purchase orders), to comply with the provisions of this article by insertion of the requirements hereof in a written contract agreement between CONTRACTOR and payee. Requirements to include flow-down audit provisions in contracts with payees will apply to Subcontractors, Sub-Subcontractors, material suppliers, etc. when working under any type of contract including lump sum agreement, unit price agreements. time and material agreements, cost plus agreements, etc. CONTRACTOR will cooperate fully and will cause all payees to cooperate fully in furnishing or in making available to the OWNER from time to time whenever requested in an expeditious manner any and all such information, materials and data required by this article of the contract. “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause The OWNER's agent or its authorized representative shall have access to the OWNER's facilities, shall be allowed to interview all current or former employees to discuss matters pertinent to the performance of this contract, shall have access to all necessary records, and shall be provided adequate and appropriate work space, in order to conduct audits in compliance with this article. If an audit inspection or examination in accordance with this article, discloses overpricing or overcharges (of any nature) by the CONTRACTOR to the OWNER in excess of one-half of one percent (.5%) of the total contract billings, in addition to repayment or credit for the overcharges, the reasonable actual cost of the OWNER's audit shall be reimbursed to the OWNER by the CONTRACTOR. Any adjustments and/or payments which must be made as a result of any such audit or inspection of the CONTRACTOR's invoices and/or records shall be made within a reasonable amount of time (not to exceed 90 days) from presentation of the OWNER's findings to CONTRACTOR. Region of York, ON Section XXX AUDITS The Region shall have the right to audit all books and records (in whatever form they may be kept, whether written, electronic or other) relating or pertaining to this contract or agreement (including any and all documents and other materials, in whatever form they may be kept, which support or underlie those books and records), kept by or under the control of the Contractor, including, but not limited to those kept by the Contractor, its employees, agents, assigns, successors and subcontractors. The Contractor shall maintain such books and records, together with such supporting or underlying documents and materials, for the duration of this contract or agreement and for at least two years following the completion of this contract or agreement, including any and all renewals thereof. The books and records, together with the supporting or underlying documents and materials shall be made available, upon request, to the Region, through its employees, agents, representatives, contractors or other designees, during normal business hours at the Contractor's office or place of business. In the event that no such location is available, then the books and records, together with the supporting or underlying documents and records, shall be made available for audit at a time and location in The Regional Municipality of York, Ontario, which is convenient for the Region. This paragraph shall not be construed to limit, revoke, or abridge any other rights, powers, or obligations relating to audit which the Region may have by Federal, Provincial, or Municipal statute, ordinance, regulation, or agreement, whether those rights, powers, or obligations are express or implied. Regional FISCAL RESPONSIBILITY, RECORDS, CONTROLS Transportation Contractor shall maintain books, records, documents and other evidence of Commission of accounting procedures and practices, which sufficiently and properly reflect all Southern Nevada costs expended in the performance of this Agreement and paid for by the RTC. These records shall be subject at all reasonable times to review, inspect, copy, and audit by persons duly authorized by the RTC. These records shall be kept for a minimum of three (3) years after completion of the Contract. REPORTS Contractor shall provide RTC with reports on a daily, weekly, monthly, and annual basis as needed and as described in EXHIBIT A, Scope of Work. Contractor shall maintain copies of these reports for a period of three (3) years after completion of the Contract. These reports shall be subject at all reasonable times to review, “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause inspect, copy, and audit by persons duly authorized by the RTC. Richmond, VA The City of Richmond reserves the right to review, on demand and without notice, all of the files associated with this Contract where payments are based on Vendor's record of time, salaries, materials or actual expenses. The City further reserves the right to review, on demand and without notice, all files of any subcontractor employed by Vendor to provide services or commodities under this Contract where payments by the City are based on records of time, salaries, materials or actual expenses. Richmond, VA The City reserves the right to audit all aspects of the contract: the vendor's financial capability and accounting system, basis for progress payments, compliance with applicable laws, as well as appropriate vendor records. The City further reserves the right to review, on demand and without notice, all files of any subcontractor employed by the Contractor to provide services or commodities under this Contract where payments by the City are based on records of time, salaries, materials or actual expenses. In cases where the vendor maintains multiple offices, records to be audited should be maintained locally or be deliverable to a location in the metro-Richmond area. Sarasota County, Professional Service Contracts: FL Records of costs incurred under the terms of this Agreement shall be maintained by the CONSULTANT and made available to the COUNTY during the period of this Agreement and for one (1) year after final payment is made. Upon request by the COUNTY, copies of these documents and records shall be furnished to the COUNTY, without cost to the COUNTY. I. The CONSULTANT shall maintain books, records, documents, and other evidence directly pertaining to or connected with the services under this Agreement which shall be available and accessible at the CONSULTANT'S offices for the purpose of inspection, audit, and copying during normal business hours by the COUNTY, or any of its authorized representatives. Such records shall be retained for a minimum of three (3) years after completion of the services. Construction Contracts: Access To Records. CONTRACTOR, its employees and agents including all subcontractors, shall allow access to its records during normal business hours to the COUNTY, its employees and agents. Stockton, CA Some of our revenue audits include a statement that if the audit identifies an error in the amount paid to the City of more than 5%, the entity will repay the cost of the audit. I was reading a management services contract that had a 'flow-down ' clause, that if any subcontractors were used, that agreements would include the City's right to audit. Toronto, ON 4. OBLIGATIONS OF THE CONTRACTOR THE CONTRACTOR SHALL: 4.14 Establish a system of fare distribution and collection for regular services in accordance with Schedule “C” hereto and collect the fares for such service. As “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause provided herein, proper accounts shall be kept of all fare distribution and collection, and form part of the financial records available to the City for its review or audit. 4.26 Keep proper accounting and operating records in accordance with generally accepted accounting principles and provide a monthly report to the City which shall contain, but not be limited to, the information outlined in Schedule “E”. In addition, the Contractor shall keep all other records as may reasonably be required by the City from time to time and assist the City in providing the reporting requirement of transit associations, Provincial or Federal Government agencies or similar bodies. Subject to Schedule “D” hereto, the Contractor shall also provide to the City monthly income statements. These reports are to be provided as soon as possible following the month end but no later than the 20th day thereafter. The records of the Contractor shall, at all times, be open to audit by the City. In the event that the province should during the term of this Contract supply financial assistance either directly or indirectly to the Contractor, then the records of the Contractor shall also be, at all times, open to audit by the Province. Year end reports are to be provided by the Contractor to the City as soon as possible in the new year but not later than February 5th of the same year. Approved audited statements are to be submitted by the Contractor to the City as soon as possible in the new year but not later than March 31st of the same year. A second version: 7.4 The Owner shall provide the City with an estimate of the total cost of the Rehabilition (together with all supporting contracts, designs, drawings, specifications, quotations and material prices) in support of the application for a Rehabilitation Grant at the time of application, and shall also provide any further information requested by the City. Any and all of these cost estimates, plans, specifications, budgets and contract documents may be, where required by the City, subject to verification, third party review or independent audit, at the expense of the Owner. The Owner acknowledges that the City is relying upon this information and that if the information in this Agreement, the associated application, and/or any supporting documentation submitted to the City is, in the opinion of the City, incomplete, false, inaccurate or misleading, the Grant will be forfeited and not advanced by the City, and where the Grant in full or any payment of the Grant has already been advanced by the City, such payments shall be repaid by the Owner forthwith upon demand by the City. “Right to Audit” Clause Survey, February/March 2004 Jurisdiction Right to Audit Clause 8.1 The City reserves the right to require a third party review or independent audit of all documentation submitted in support of the Grant application, including, but not limited to: (a) estimates and actual costs of the eligible works; and (b) environmental reports and documentation. Virginia Beach, VA XIX. AUDITS The City shall have the right to audit all books and records (in whatever form they may be kept, whether written, electronic or other) relating or pertaining to this contract or agreement (including any and all documents and other materials, in whatever form they may be kept, which support or underlie those books and records), kept by or under the control of the Contractor, including, but not limited to those kept by the Contractor, its employees, agents, assigns, successors and subcontractors. The Contractor shall maintain such books and records, together with such supporting or underlying documents and materials, for the duration of this contract or agreement and for at least three years following the completion of this contract or agreement, including any and all renewals thereof. The books and records, together with the supporting or underlying documents and materials shall be made available, upon request, to the City, through its employees, agents, representatives, contractors or other designees, during normal business hours at the Contractor's office or place of business in Virginia Beach, Virginia. In the event that no such location is available, then the books and records, together with the supporting or underlying documents and records, shall be made available for audit at a time and location in Virginia Beach, Virginia, which is convenient for the City. (IF A NARROWER AUDIT PARAGRAPH IS TO BE NEGOTIATED, CONSULT WITH THE CITY AUDITOR TO SEE IF CERTAIN DOCUMENTS NEED TO BE MADE SPECIFICALLY AVAILABLE FOR AUDIT FREQUENTLY OR ON SHORT NOTICE.) This paragraph shall not be construed to limit, revoke, or abridge any other rights, powers, or obligations relating to audit which the City may have by State, City, or Federal statute, ordinance, regulation, or agreement, whether those rights, powers, or obligations are express or implied. Data compiled by Bill Cook, City of Edmonton, 2004 March 18.
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